Yes
14% (3)

No
45% (10)

Depends
41% (9)

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San Diego should review whether to keep providing thousands of acres of space to nonprofit groups at little or no cost, a report to be discussed Monday by the city’s audit committee is recommending.

City Auditor Eduardo Luna’s report notes that the city has not implemented the 2006 recommendations of a consultant hired to examine its Real Estate Assets Department after a series of U-T investigative reports on the city’s property management practices.

According to the audit, the consultant recommended examining whether the nonprofits support a city goal or provide a city service, determine their ability to pay rent, look at housing the nonprofits in a different location and track what the subsidies cost.

“While there are good public policy reasons for the city to subsidize rents for many nonprofit groups, the city nonetheless incurs costs for providing free rent in addition to the forgone lease income,” the audit concluded.

In fiscal 2010, the city collected $993,298 for 126 leases of 2,656 acres, or about $31 per acre per month. Many of the leases have been in existence for a long time and have been repeatedly renewed, the audit found.

Real Estate Assets Department officials told the auditors that the nonprofits receive a lot of community support and are vocal in their opposition to any fees for the free or low-cost leases. They also said the department has many other work priorities and has not been able to dedicate time to addressing the issue.

Asked about the auditor’s recommendation, Councilman Kevin Faulconer said he expects to work with council in addressing the issue.

“The city’s rules for working with nonprofit organizations need to be fair and transparent so taxpayer dollars are protected. The city’s policy governing city leases for not-for-profit entities is approaching 30 years old,” Faulconer said. “It’s only fair to nonprofit groups, whose work should be lauded, and taxpayers that this outdated council policy is brought up to date. As Audit Committee chair, I will work with the City Council to make that happen.”